ah so i have to install bitflu. didnt know that, didnt find that on the INSTALL text, is there anything else i need to install? and do i need to install bitflu on just the webserver or on all the fileserver as well if i choose to enable the file servers for torrenting?

You don't have to install anything. Just copy the Torrents folder to cgi-bin, apply correct permissions to files/folders, then start the torrent engine from Torrents page on your site or by running ./butfu.pl from root ssh console.